Taking a Cooperative Business into Africa Essay.
He has a clear understanding, what kinds of opportunities and threats are typical of African regional arrest, what business model is more suitable in such market conditions, and what plans his company has for future. It is possible to say, that this well-considered decision will bring new additional benefits and profits. Regarding the economic situation of that time, African market had better prospects as Southeast Asia and South America and offered numerous advantages for Investors, especially from Europe.
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Countries from African continent were the fastest growing economies in the world and the most of them were untouched by the financial crisis. Africa has the same time zone as Europe and its business cultural can be easily adapt to the European one. Africa has a service-oriented culture and the market of approximately one billion people with a rapidly growing middle class. The main disadvantage of African market Is a lack of transparency, that’s why people used to get Information from headlines.
But for people who can Identify and realize the differences between real and perceived risk this market can provide great possibilities for development. For Mr.. Chichi’s company Africa opened different options for business operations. First of all, healthcare sector was fragmented. It means, only less than 20 per cent of population used the services of a well-funded, world-class private healthcare industry, while the rest had to use poorly run and under-resourced public facilities.
Second, the government Initiated a 14-year process of rolling out a national healthcare Insurance system. Third, growing middle class made a demand on the access to better healthcare. Mr.. Chichi chose South Africa for its unique combination of cosmopolitan and African cultures, as the first country to implement his strategy. The vibrant business culture in Africa called for a stable and correctly functioning business model that meets all the market’s requirements.
From this point of view the most appropriate model is the cooperative model that Is so popular In emerging markets: a group of people tender Jointly for business, provide preferential supplier/customer relationships to each other, share infrastructure. Using this model companies can benefit economics both scale and scope. For his potential partners Mr.. Chichi established the common strong requirements such, as profitability, experience in business in Africa, privately owned, and skilled management team.
Owing to this model the company achieved outstanding results in South Africa, Zambia, the united Arab Emirates and Ghana. Expanding the cooperative model relationships appears that is associated with coordinating and managing relationships between partners. It is also possible, that application of the existing footprints of its current partner will limit He’s expansion and make dependent on a single partner. Differences in government regulations and potential interference could cause new difficulties for the company.
From the other hand the good local network created within the cooperative model could reduce some of the risk. Mr.. Chichi has decided to expand aggressively and I think it was a correct decision. The market in Africa is opportunistic and biased toward specific opportunities. Mr.. Chichi should not forget about the operations in the already available countries, but the further international expansion will lead to new markets and new products. Also Mr..Taking a Cooperative Business into Africa Essay.
Chichi will be able to fulfill his dream to change the people’s lives in better way and to generate “responsible profits” for his company. He began to match the proper people for Coos position in order to consolidate the existing operations by locating individual and to run local He’s business in each country. Another important management problem is, how more local healthcare providers would need to be identified in each country and than incorporated into the local cooperative. Mr..
Chichi developed the expansion plan that included six countries. Two main aspects were taken into consideration: population and infrastructure. Such countries as Botswana, Iambi and Macaque, have well-developed infrastructure and also can be supported from neighboring South Africa. High poverty and lack of infrastructure in Nigeria could cause additional difficulties to the company, but the population of 160 million people is a good support for providing company’s services ND products.Taking a Cooperative Business into Africa Essay.
Kenya and Senegal were examined not only as the possible markets with large population, but also as a base for accessing other countries as Tanzania, Rwanda, South Sudan and Francophone countries. As a result of the expansion Mr.. Chichi’s company will get an access to the market of 236 million people with average 5. 25% of GAP growth annual. The expansion plan allows forecasting the growth of company’s profits and the enhancement of the customers list. Hello Healthcare provides services in different African countries for diverse groups of customers.
The many tries to meet needs all of their customers, because the company uses the responsible framework for its business strategy. The international expansion of the operation doesn’t mean only the larger market for sales, but also improvement of living conditions in these countries. Of course, such big company with a lot of local partners and different products and services needs appropriate management and well-developed strategy, but Mr.. Chichi created the well-organized system of business, that based on transparency, trust and passion to make a sustainable business.Taking a Cooperative Business into Africa Essay.
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